Risk Disclosure Statement

Last Updated: March 28, 2026

1. General Investment Risks

All investments carry risk. The value of any investment may fluctuate, and investors may receive back less than they originally invested. There is no guarantee that any investment strategy will achieve its objectives. The following risks apply generally to all trading conducted through the MyAllies Trading platform:

• Market Risk: The value of securities can decline due to changes in market conditions, economic factors, geopolitical events, corporate performance, industry trends, and investor sentiment. Markets can experience sudden, sharp, and prolonged declines
• Volatility Risk: Securities prices can experience significant and rapid changes in short periods. Volatility can be caused by economic data releases, earnings announcements, geopolitical events, changes in interest rates, or other factors that are difficult to predict
• Loss of Capital: You may lose some or all of the capital you invest. In certain situations, particularly with leveraged or derivative products, you may lose more than your initial investment
• Concentration Risk: Investing a significant portion of your portfolio in a single security, sector, or asset class increases your exposure to adverse events affecting that position
• Inflation Risk: The purchasing power of your investment returns may be eroded by inflation, meaning the real value of your investments may decline even if nominal values increase
• Interest Rate Risk: Changes in interest rates can affect the value of securities, particularly fixed-income instruments and interest-rate-sensitive equities

2. Stock Trading Risks

Trading stocks on our platform involves the following specific risks:

• Company-Specific Risk: Individual stocks can decline significantly due to poor financial performance, management failures, competitive pressures, legal issues, or loss of key customers or contracts
• Sector Risk: Stocks within specific sectors or industries may move together in response to sector-wide events, regulatory changes, or shifts in consumer demand
• Dividend Risk: Companies may reduce, suspend, or eliminate dividend payments at any time. Past dividend history does not guarantee future payments
• Delisting Risk: A stock may be delisted from an exchange, significantly reducing liquidity and potentially resulting in substantial losses
• Small-Cap and Micro-Cap Risk: Smaller companies generally carry higher risk due to limited financial resources, narrower product lines, less experienced management, and lower trading volumes resulting in wider bid-ask spreads
• After-Hours and Pre-Market Trading Risk: Extended-hours trading carries additional risks including lower liquidity, wider spreads, higher volatility, and the possibility that prices may not reflect the next regular-session opening price

3. Options Trading Risks

Options are complex financial instruments that carry significant risks. Before trading options, you should thoroughly understand the characteristics of the options you intend to trade and the risks involved.

• Total Loss Risk: Buyers of options may lose 100% of their investment (the premium paid) if the option expires out of the money. The majority of options expire worthless
• Time Decay (Theta): Options are wasting assets. The time value of an option decreases as it approaches its expiration date. This erosion accelerates as expiration nears, particularly for at-the-money options
• Leverage Risk: Options provide leverage, which amplifies both potential gains and potential losses. A relatively small adverse move in the underlying security can result in a complete loss of the option premium
• Implied Volatility Risk: Changes in implied volatility can significantly affect option prices, independent of changes in the underlying security's price. A decrease in implied volatility can reduce the value of options positions even when the underlying moves favorably
• Assignment Risk: Writers of American-style options can be assigned at any time before expiration. Early assignment can result in unexpected obligations and cash flow requirements
• Exercise and Settlement Risk: Options may be automatically exercised at expiration if they are in the money, potentially creating large stock positions or obligations that require significant capital
• Complex Strategy Risk: Multi-leg options strategies such as spreads, straddles, strangles, iron condors, and butterflies carry unique risk profiles that may not be intuitively understood. The maximum profit and maximum loss characteristics of each strategy must be thoroughly evaluated before execution
• Liquidity Risk: Not all options contracts are actively traded. Illiquid options may have wide bid-ask spreads, making it difficult to enter or exit positions at favorable prices
• Pin Risk: Options that are near the money at expiration may or may not be exercised, creating uncertainty about whether you will have a stock position after expiration

4. Risks of Selling Uncovered (Naked) Options

If you sell uncovered options through our platform, you must understand and accept the following risks:

4.1 Uncovered Call Writing

• Unlimited Loss Potential: When you sell an uncovered (naked) call option, your potential loss is theoretically unlimited. If the underlying stock rises significantly above the strike price, you are obligated to sell shares at the strike price regardless of how high the market price has risen. There is no upper limit to how much a stock price can increase
• Obligation to Deliver: If assigned, you must purchase shares at the current market price (which could be substantially higher than the strike price) and deliver them at the strike price, resulting in potentially catastrophic losses
• Margin Requirements: Uncovered call positions require substantial margin deposits. Margin requirements can increase without notice due to market movements, potentially triggering margin calls that require immediate additional funds or forced liquidation of positions at unfavorable prices

4.2 Uncovered Put Writing

• Substantial Loss Potential: When you sell an uncovered (naked) put option, your maximum potential loss equals the strike price minus the premium received (multiplied by the number of contracts and the contract multiplier). If the underlying stock declines to zero, you are obligated to purchase shares at the strike price
• Obligation to Purchase: If assigned, you must purchase shares at the strike price regardless of the current market price, which could be significantly lower. This requires substantial capital and may result in holding a large, losing position
• Gap Risk: Stock prices can gap down significantly overnight or over weekends due to earnings announcements, corporate events, or market-wide selloffs. You may have no opportunity to close or adjust your position before a large adverse move

4.3 General Risks of Uncovered Option Writing

• Margin Calls: You may be required to deposit additional funds on short notice. If you fail to meet a margin call, your broker may liquidate your positions without prior notice at prices that may result in substantial losses
• Forced Liquidation: Your broker has the right to liquidate your positions at any time to meet margin requirements, even if this results in losses. You have no right to choose which positions are liquidated or the timing of liquidation
• Increased Margin Requirements: Margin requirements may be increased at any time due to changes in market conditions, regulatory requirements, or broker risk management policies. This may require you to deposit additional funds or reduce your positions
• Short Squeeze Risk: Rapid price increases in the underlying security can create a "short squeeze" scenario where demand to cover short positions drives prices even higher, amplifying losses
• Overnight and Weekend Risk: Markets are closed overnight and on weekends and holidays. Significant price movements can occur during these periods due to news events, earnings releases, or global market developments, and you cannot adjust your positions until the market reopens

5. Margin Trading Risks

Trading on margin involves borrowing funds from your broker to purchase securities or to meet the requirements of short options positions. Margin trading carries the following specific risks:

• Amplified Losses: Margin amplifies both gains and losses. A decline in the value of securities purchased on margin can result in losses exceeding your initial investment. You may owe more than you deposited
• Margin Calls: If your account equity falls below the maintenance margin requirement, you will receive a margin call requiring you to deposit additional funds or securities. Failure to meet a margin call may result in the forced liquidation of your positions
• Forced Liquidation Without Notice: Your broker has the right to sell securities in your account without prior notice to meet margin requirements. You have no right to select which securities are sold or to request an extension of time to meet a margin call
• Interest Charges: Margin borrowing incurs interest charges that reduce your overall returns and continue to accrue regardless of whether your positions are profitable
• Changing Requirements: Margin requirements can change at any time based on market conditions, regulatory changes, or broker risk management decisions. Increased requirements may force you to deposit additional funds or reduce positions
• Short Sale Risk: Short selling on margin carries the risk of unlimited losses, as there is no limit to how high a stock price can rise

6. Market and Liquidity Risks

• Liquidity Risk: Not all securities trade actively. Low-volume securities may have wide bid-ask spreads, and you may not be able to sell a security at a favorable price or at all when you want to. Options on certain underlyings may have very limited liquidity
• Market Disruption: Exchanges may halt trading in specific securities or across the entire market due to extraordinary events, circuit breakers, or regulatory action. During halts, you cannot execute orders, and prices may change significantly before trading resumes
• Gap Risk: Prices may "gap" -- move sharply between consecutive trades or between the closing price of one session and the opening price of the next. Stop-loss orders may be executed at prices significantly different from the stop price
• Flash Crashes: Rapid, deep price declines followed by quick recoveries can occur due to algorithmic trading, technical glitches, or cascading sell orders. Orders executed during such events may be at extreme prices
• Market-Wide Systemic Events: Financial crises, pandemics, geopolitical conflicts, or other systemic events can cause prolonged market-wide declines, increased correlations between assets, and reduced liquidity across all markets

7. Counterparty and Systemic Risks

• Broker Risk: Your assets are held by our execution and clearing partners. While client assets are typically segregated from firm assets, the financial failure of a broker or custodian could result in delays or losses in accessing your funds and securities
• Clearing House Risk: The Options Clearing Corporation (OCC) and other clearing entities act as counterparties to options trades. While these entities are well-capitalized, a systemic failure at a clearing house could affect the settlement of your trades
• Exchange Risk: Exchange technology failures, communication disruptions, or operational issues could prevent order execution, cause erroneous executions, or result in trade breaks
• Settlement Risk: In rare circumstances, a counterparty may fail to deliver securities or funds at settlement, potentially affecting your positions

8. Technology and Execution Risks

• System Failures: Hardware, software, and network failures can prevent order submission, execution, modification, or cancellation. We cannot guarantee uninterrupted access to our platform
• Latency: Data transmission delays can result in stale market data or delayed order execution. The prices displayed on your screen may not reflect current market prices at the time your order is executed
• Order Execution: Market orders may be executed at prices significantly different from the last displayed price, especially during periods of high volatility or low liquidity. Limit orders may not be executed if the market price does not reach your limit price
• Internet Connectivity: Trading requires a reliable internet connection. Connection failures, slowdowns, or interruptions at any point between your device and our servers or exchange systems may prevent timely order execution or position management
• Cybersecurity: Despite our security measures, no system is entirely immune to cyber threats. Unauthorized access to your account, data breaches, or other security incidents could result in financial losses
• Mobile Trading: Trading via mobile devices carries additional risks related to network connectivity, device performance, and the limitations of mobile interfaces

9. AI and Algorithmic Trading Risks

Our platform provides AI-powered market analysis, trading signals, and insights. If you use these features, you should understand the following risks:

• Model Risk: AI and machine learning models are trained on historical data and may not accurately predict future market conditions. Models can fail during unprecedented market events or structural changes in market dynamics
• Data Quality Risk: AI outputs depend on the quality and completeness of input data. Errors, delays, or gaps in data can lead to inaccurate or misleading results
• Overfitting Risk: Models optimized on historical data may perform poorly on future data if they have overfit to past patterns that do not repeat
• Correlation Breakdown: Historical correlations between assets and market factors can break down, particularly during periods of market stress, leading to model failures
• Black Box Risk: Complex AI models may produce outputs that are difficult to interpret or explain. You should not rely on any signal or analysis that you do not understand
• Algorithmic Trading Risk: If you use our AI signals as input to automated trading strategies, you bear the additional risk of automated execution errors, incorrect signal interpretation, and unintended position accumulation

10. Currency and Regulatory Risks

• Currency Risk: If your base currency is not US Dollars, fluctuations in exchange rates between your base currency and USD can affect the value of your positions and returns when converted back to your home currency, even if the underlying investment has performed well in USD terms
• Regulatory Risk: Changes in laws, regulations, or regulatory interpretations can affect the value of your investments, the availability of certain products or strategies, or the tax treatment of your returns. Regulatory changes may occur with little or no advance notice
• Tax Risk: The tax treatment of trading gains and losses varies by jurisdiction and can change. You are solely responsible for understanding and meeting your tax obligations
• Cross-Border Risk: Trading in US-listed securities from outside the United States may subject you to the laws and regulations of multiple jurisdictions, which may conflict or create additional obligations

11. Tax Risks

Trading activity may have significant tax implications that vary depending on your jurisdiction of residence, the types of securities traded, and the nature and duration of your positions. You should be aware that:

• Capital gains taxes, withholding taxes, and transaction taxes may apply to your trading activity
• Options trading may have complex tax treatment, including rules related to constructive sales, wash sales, straddle rules, and qualified covered calls
• Tax laws and regulations are subject to change and may apply retroactively
• US withholding tax may apply to dividends received on US-listed securities held by non-US persons
• You are solely responsible for reporting your trading activity and paying any taxes owed. We do not provide tax advice

We strongly recommend consulting a qualified tax professional regarding the tax implications of your trading activity.

12. Past Performance Disclaimer

Any performance data shown on our platform, whether related to individual strategies, AI models, social trading leaders, or the platform generally, is subject to the following important limitations:

• Historical performance data does not predict or guarantee future results
• Backtested or hypothetical performance results have inherent limitations. Unlike actual trading records, backtested results do not represent actual trading and may not account for the impact of certain market factors such as liquidity constraints and slippage
• Results achieved in demo accounts do not reflect actual trading conditions and should not be used to predict live trading results
• Performance results of other traders on our social trading platform do not guarantee that you will achieve similar results. Each trader's experience, knowledge, risk tolerance, and financial situation are unique
• Performance may be presented before the deduction of trading commissions, fees, and taxes, which will reduce actual returns
• Short-term performance data may not be representative of long-term results

13. Not Investment Advice

You acknowledge and agree that:

• All market data, research, analysis, AI-generated signals, news, commentary, and other content provided through our Services are for informational and educational purposes only
• You are solely responsible for all investment and trading decisions you make. We do not make trading decisions on your behalf (unless you have explicitly opted into a managed account service, if available)
• The mention of specific securities, strategies, or market conditions on our platform does not constitute a recommendation to buy, sell, or hold any security
• You should conduct your own research and analysis and, where appropriate, seek advice from qualified, licensed financial professionals before making trading decisions
• Our employees and affiliates may hold positions in securities discussed on or traded through our platform

14. Investor Protection and SIPC Coverage

Trades executed through our platform are cleared and held by our execution and clearing partners. The following investor protection information applies:

• SIPC Protection: Securities held in accounts at our US-based clearing partners may be protected by the Securities Investor Protection Corporation (SIPC), which protects against the loss of cash and securities held by a customer at a financially troubled SIPC-member brokerage firm. SIPC protection is limited to $500,000 per customer, including a $250,000 limit for cash claims
• SIPC Does NOT Protect Against Market Losses: SIPC coverage protects against the loss of securities and cash in the event of a broker's financial failure. It does NOT protect against declines in the market value of your investments
• Excess Coverage: Some of our clearing partners may carry additional insurance in excess of SIPC limits. Details are available upon request
• FDIC: Securities and cash in brokerage accounts are NOT insured by the Federal Deposit Insurance Corporation (FDIC). FDIC coverage applies only to deposits at insured banks

For more information about SIPC protection, visit www.sipc.org.

15. Suitability

Before opening an account and trading on our platform, you should carefully assess whether trading is suitable for your financial situation. Consider the following:

• Your financial objectives, investment time horizon, and risk tolerance
• Your level of experience and understanding of the products you intend to trade
• Whether you can afford to lose the capital you allocate to trading, without affecting your ability to meet essential living expenses, debt obligations, or other financial commitments
• Whether you understand the specific risks associated with the strategies you plan to employ, particularly complex options strategies and margin trading
• Whether you have access to independent financial and tax advice

If you are uncertain whether trading is appropriate for your circumstances, we strongly recommend that you seek the advice of a qualified, independent financial advisor before opening an account or placing any trades.

16. Acknowledgment

By opening an account with MyAllies Trading and using our Services, you acknowledge that:

• You have read this Risk Disclosure Statement in its entirety and understand the risks described herein
• You understand that trading involves significant risk of loss and that past performance does not guarantee future results
• You are solely responsible for your trading decisions and accept full responsibility for all outcomes of your trading activity
• You will not hold Aramas GmbH, its directors, officers, employees, affiliates, or service providers liable for any losses you incur as a result of your trading activity
• You understand that this Risk Disclosure Statement does not describe all possible risks associated with trading and that additional risks may exist
• You agree to review this Risk Disclosure Statement periodically, as it may be updated from time to time

If you have any questions about the risks described in this document, please contact us at risk@myallies.com or consult an independent financial advisor before trading.